More Facts on Campaign

Medical Debt Remains a Persistent Problem

Like many people, hard-working families in the Hill Country of Texas try to save for financial independence. But many times, they may not be ready for an unexpected medical expense that they cannot pay, even a bill for $1,000 or more.

According to the Health System Tracker by Peterson-KFF, “Medical debt remains a persistent problem even among people with insurance coverage. Most Americans have private health insurance, which generally requires payment of a deductible, coinsurance, and copays for medical services and prescriptions. A serious injury or illness can cost thousands of dollars out-of-pocket to meet these deductibles and other cost-sharing requirements. For people with a chronic illness, even smaller copays and other cost-sharing expenses can accumulate to unaffordable amounts. Insured patients can also incur medical debt from care that is not covered by insurance, including for denied claims, and for out-of-network care”. Click here to read the article.

Even a Medical Bill for a Few Hundred Dollars Can Present Major Problems

The Health System Tracker continues that “many Americans, even those with private health insurance, do not have enough liquid assets to meet deductibles or out-of-pocket maximums. Among single-person privately-insured households in 2019, 32% did not have over $2,000 saved. Among multi-person households where at least one household member has private insurance, 20% did not have savings over $2,000. Additionally, 16% of privately-insured adults say they would need to take on credit card debt to meet an unexpected $400 expense, while 7% would borrow money from friends or family. For these people, even a medical bill for a few hundred dollars can present major problems.

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Your support can help St. Martin's Episcopal Church, its sister congregations and other community supporters give relief to families who have the burden of unpaid medical debt.  Please click on the image to donate.

People with Medical Debt are also More Likely to Have Other Forms of Financial Distress

St. Martin’s Episcopal Church in Mason, TX is partnering with the not-for-profit Undue Medical Debt to alleviate the financial, as well as the emotional burden, of unpaid medical bills. Undue Medical Debt says that “even after medical insurance payouts, there can be unaffordable monthly medical bill payments” that families in the Hill Country must make, threatening their financial stability.

They continue, “Texans who normally would never dream of ignoring a bill are forced to choose between providing for their family and carving deep into their utility and food budget to pay off a debt incurred through no fault of their own”. Many families must choose between buying needed medications or buying food for their children.

According to a KFF poll, this “suggests that people with unaffordable medical bills are more likely to delay or skip needed care to avoid incurring more medical debt, cut back on other basic household expenses, take money out of retirement or college savings, or increase credit card debt. People with medical debt are also more likely to have other forms of financial distress”.

Without help, some will never escape the burden of their medical debts. St. Martin’s and its partners in the Episcopal Diocese of West Texas and beyond feel called to help erase the burden of unpaid medical debt in our area. Click here to read the KFF poll.

This Debt is Most Pronounced Among People Who Are Already Struggling with Poor Health, Financial Insecurity, or Both

The Health System Tracker continues, “Medical debt can happen to almost anyone in the United States, but this debt is most pronounced among people who are already struggling with poor health, financial insecurity, or both. People who are very ill or living with a disability are also at risk of losing their employment or income due to illness. Shortcomings in both health insurance coverage and social safety net programs aimed at replacing income during a time of illness can compound to increase the likelihood that people with serious health care needs end up with large amounts of medical debt. There are also significant racial disparities, with Black Americans being much more likely than people of other racial or ethnic backgrounds to report owing medical debt.
“The fact that medical debt is a struggle even among households with health insurance and middle incomes indicates that simply expanding coverage will not erase the financial burden caused by high cost-sharing amounts and high prices for medical services and prescription drugs”.